Cardinal Health Banks On Buyouts Amid Intense Competition
Zacks Investment Research | Dec 11, 2017 09:15PM ET
On Dec 11, we issued an updated research report on Cardinal Health, Inc. (NYSE:CAH) . The stock carries a Zacks Rank #3 (Hold).
Cardinal Health follows an acquisition-driven strategy and focuses on investing in key businesses to gain traction and boost profits. In line with this, the company recently entered into an agreement to buy the radioactive diagnostic drug Lymphoseek from Navidea Biopharmaceuticals.
We are also encouraged to note that Cardinal Health is pursuing growth via joint ventures and long-term supply agreements. The company entered a long-term agreement with Henry Schein (NASDAQ:HSIC), under which the latter purchased Cardinal Health’s medical supplies for physician practices. The collaboration is expected to drive Cardinal Health’s earnings over the long haul.
Meanwhile, Cardinal Health's Pharmaceutical segment has been gaining on solid client retention, with the loss of only a few key customers like Walgreens Boots Alliance, Inc. (NASDAQ:WBA) and Express Scripts Holding Company (NASDAQ:ESRX) .
Recently, Cordis, a Cardinal Health company, and Medinol announced the receipt of FDA approval of the EluNIR drug-eluting stent (DES) for treating narrowing of or blockage in coronary arteries. Cardinal Health also recently launched the Opioid Action Program.
Cardinal Health’s share price movement over the last year has failed to impress. The stock has lost almost 18.3%, comparing unfavorably with the broader Original post
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